Ranger Acquisition Overview and Canada Light Oil Update
INVESTMENT HIGHLIGHTS
Focus on Operational Excellence to Deliver Long-Term
Value and Enhanced Shareholder Returns
Disciplined
Reinvestment and
Capital Allocation
High-quality and diversified oil portfolio with 10 or more years drilling
inventory across each of our core assets
Track record of new discoveries
Targeting modest single-digit organic growth with 50-55% reinvestment
rate (1) and strong returns
Strong Free Cash Flow
Generation
50% of free cash flow (2) to direct shareholder returns through share
buybacks and a quarterly dividend
50% of free cash flow to further strengthen balance sheet
Maintain Financial
Strength
Commitment to a strong balance sheet
Total debt (3) target of $1.5 billion represents 1x total debt to EBITDA (3) at
US$50 WTI
Disciplined hedging program to help mitigate revenue volatility due to
commodity prices
Reinvestment rate is calculated as E&D expenditures expressed as a percentage of adjusted funds flow for the applicable period.
(1)
(2)
(3)
Total debt and EBITDA are calculated in accordance with the amended credit facilities agreement which is available on SEDAR at www.sedar.com
Specified financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures presented by other entities. Refer to the Specified Financial
Measures section in this presentation for further information..
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